Management Book Objective Set Number 139

Q1: When will a claim be allocated to the fast track

Answer

Answer: The claim is for more than £5,000, but less than £25,000, and the trial is expected to last less than one day, and substantial amounts of oral evidence will not be provided.

Q2: Which one of the following types of case would be heard in the Queen’s Bench Division of the High Court

Answer

Answer: A case involving an alleged ultra vires act of a local authority.

Q3: Since October 2009, the Judicial Committee of the Privy Council still hears which one of the following types of case

Answer

Answer: Appeals from the decisions of the courts of certain Crown Dependencies and Commonwealth countries.

Q4: Statement “The Supreme Court will only hear a case if it has granted leave to appeal, or leave to appeal has been granted by the court whose decision the claimant/defendant is seeking to appeal.”

Answer

Answer: Correct – True

Q5: Statement “Decisions of Upper Tribunals can be appealed to the High Court.”

Answer

Answer: Incorrect

Q6: Statement “Cases in the High Court are normally heard by a single puisne judge.”

Answer

Answer: Correct – True

Q7: What is the final appeal court in the United Kingdom in relation to domestic cases

Answer

Answer: The Supreme Court.

Q8: Regarding the legal profession, which ONE of the following statements is true

Answer

Answer: Solicitors may operate individually, as part of a firm, or they may incorporate their business.

Q9: Which of the following is NOT a domestic source of law

Answer

Answer: Hansard

Q10: An Act of Parliament that takes all existing law and sets it out in a new statute is known as

Answer

Answer: A codifying Act of Parliament.

Q11: When a Public Bill passes through the House of Commons, it will need to pass through a number of stages. Which one of the following options states the stages in the correct order

Answer

Answer: First Reading, Second Reading, Committee Stage, Report Stage, Third Reading.

Q12: In relation to the legislative process, the House of Lords can

Answer

Answer: Delay the passing of a Bill for up to one year.

Q13: When interpreting statute, the judges may apply certain presumptions in order to determine the intention of Parliament. Which one of the following is NOT a valid presumption

Answer

Answer: Presumption that legislation will apply to the Crown.

Q14: The golden rule of statutory interpretation provides that

Answer

Answer: Where the normal everyday meaning of words produces an absurd result or a result that Parliament could not have intended, then the words should be given an alternative meaning, providing that the meaning is one that the words can bear.

Q15: Regarding the Civil Division of the Court of Appeal, which ONE of the following statements is untrue

Answer

Answer: The Civil Division can ignore its own previous decision if it considers it just to do so.

Q16: The Court of Appeal is bound by the decisions of which court(s)

Answer

Answer: Decisions of the House of Lords/Supreme Court and generally its own decisions.

Q17: The ratio decidendi of a case refers to

Answer

Answer: The reason for deciding a case.

Q18: Statement “Membership of the European Union automatically results in the Member State becoming a signatory to the European Convention on Human Rights.”

Answer

Answer: Incorrect

Q19: Which ONE of the following types of EU legislation is directly applicable (that is, becomes part of domestic law once passed)

Answer

Answer: Regulations

Q20: Why is R v Secretary of State for Transport, ex parte Factortame regarded as a revolutionary decision

Answer

Answer: It provided that that EU law prevails over conflicting domestic law, even if the domestic law is contained in an Act of Parliament.

Q21: Statement “The United Kingdom became part of the European Union in 1973 following the passing of the European Communities Act 1972.”

Answer

Answer: Correct

Q22: Which institution of the European Union is responsible for initiating legislation

Answer

Answer: The European Commission

Q23: Which ONE of the following statements provides an accurate description of the concept of vertical direct effect

Answer

Answer: A provision has vertical direct effect if it can be relied on in a domestic court and creates obligations between Member States and individuals.

Q24: In relation to the effects of the Human Rights Act 1998 on domestic law, which ONE of the following statements is true

Answer

Answer: A court can ignore a legally binding precedent if it feels that the precedent is incompatible with a Convention right.

Q25: What does s 6 of the Human Rights Act 1998 state

Answer

Answer: That it is unlawful for a public authority to act in a manner that is incompatible with a Convention right, unless it is doing so to comply with an Act of Parliament.

Q26: Statement “English courts are required to take into account decisions of the European Court of Human Rights.”

Answer

Answer: Correct

Q27: Which ONE of the following is not a form of contractual formality

Answer

Answer: A requirement that a contract be witnessed and signed by a judge to verify its legality

Q28: Which ONE of the following types of contract is not required to be made in writing

Answer

Answer: A contract of guarantee.

Q29: Regarding the contractual capacity of a minor, which ONE of the following statements is true

Answer

Answer: Generally, a minor who enters into a contract can enforce the contract against the other party.

Q30: In relation to mental incapacity, which ONE of the following statements is true

Answer

Answer: A mentally incapacitated person can enter into a binding contract for the purchase of necessaries.

Q31: The doctrine of privity of contract states that

Answer

Answer: Only parties to a contract may enforce the contract, and the contract only imposes obligations on the parties to it.

Q32: What does s 1(1) of the Contracts (Rights of Third Parties) Act 1999 state

Answer

Answer: Section 1(1) states that, subject to the provisions of the Act, a third party can enforce a term of a contract if the contract expressly provides that he may, or the term purports to confer a benefit on him.

Q33: Which ONE of the following types of agreement is NOT excluded from the operation of s 1(1)

Answer

Answer: Contracts for the sale of goods.

Q34: Aside from the provisions of the Contracts (Rights of Third Parties) Act 1999, the law does provide other exceptions to, or ways to avoid, the doctrine of privity. Given this, which ONE of the following statements is untrue

Answer

Answer: The court has a discretion to avoid the doctrine of privity where it feels it is ‘just and reasonable’ to do so.

Q35: What is a unilateral contract

Answer

Answer: A unilateral contract is a contract whereby only one party promises to perform an act if the other party performs a stipulated act, but the other party is not under an obligation to perform the stipulated act.

Q36: What are the requirements for a valid and binding contract

Answer

Answer: Offer, acceptance, certainty, consideration, and intention to create legal relations.

Q37: Which ONE of the following usually amounts to an offer

Answer

Answer: Goods sold through a machine.

Q38: An offer can be terminated in a number of ways. Which ONE of the following is NOT an effective way to terminate an offer

Answer

Answer: Revoking the offer following acceptance.

Q39: Which ONE of the following statements regarding acceptance is true

Answer

Answer: Silence does not constitute valid acceptance.

Q40: What is the principal effect of a counter-offer

Answer

Answer: A counter-offer destroys the original offer and replace it with a new offer.

Q41: What does the postal rule state

Answer

Answer: That acceptance occurs as soon as the letter is posted.

Q42: In relation to the requirement of certainty, which ONE of the following statements is true

Answer

Answer: Where the parties have wholly or partially performed their obligations under a contract, the court is unlikely to hold that a contract is void due to vagueness or uncertainty.

Q43: Which ONE of the following statements provides an accurate description of executory consideration

Answer

Answer: Executory consideration is consideration that is yet to be provided.

Q44: It is vital to be able to distinguish between terms and mere representations. In relation to this, which ONE of the following statements is true

Answer

Answer: Generally, statements of opinion tend not to amount to representations or terms of the contract.

Q45: When determining whether a statement is a term or a mere representation, the court will take into account a number of factors. Which ONE of the following is NOT a relevant factor

Answer

Answer: The complexity and length of the statement

Q46: Which ONE of the following statements correctly describes the difference between express and implied terms

Answer

Answer: Express terms are terms that the parties have specifically negotiated should form part of the contract. Implied terms are terms added to the contract by the law or based upon the facts of the case.

Q47: What is the parol evidence rule

Answer

Answer: The parol evidence rule presumes that a written document contains all the terms of a contract, but there are situations where this presumption can be rebutted and a party will be permitted to adduce evidence that adds to, varies or contradicts the content of a written document.

Q48: There are various sources of implied terms. Regarding the implication of terms, which ONE of the following statements is untrue

Answer

Answer: Terms may be implied into a contract if the parties have dealt with each other once before.

Q49: There are several differences between terms implied in fact and terms implied in law. Which ONE of the following statements provides a valid difference between the two types of implied terms

Answer

Answer: Terms implied in fact are based on the imputed intentions of the parties, whereas terms implied in law are not based on the intentions of the parties.

Q50: Which ONE of the following is not a principle of Lord Hoffmann’s restatement

Answer

Answer: The ‘rule’ that words should be given their ‘natural and ordinary meaning’ reflects the common sense proposition that we do not easily accept that people have made linguistic mistakes, particularly in formal documents. Accordingly, the courts should interpret the terms of a contract based solely on the words contained within it.

Q51: Elen enters into a contract with Simon. She signs the contract, but does not read its terms. Simon performs the contract negligently, but points to an exclusion clause that excludes his liability for negligence. Elen states that she knows nothing about this clause. Based on the information provided, can Simon rely on the exclusion clause

Answer

Answer: Yes

Q52: What does the contra proferentem rule state

Answer

Answer: An ambiguous exclusion clause will be interpreted against the person seeking to rely on it.

Q53: Which ONE of the following is NOT within the scope of the Unfair Contract Terms Act 1977

Answer

Answer: An exclusion clause in a contract for the sale of goods between two parties, one of which is based in the UK, and the other based in the USA.

Q54: Section 2(1) of the Unfair Contract Terms Act 1977 renders ineffective any contractual term that excludes liability for death or personal injury caused by negligence. True or False

Answer

Answer: Wrong – False

Q55: In relation to when a person ‘deals as a consumer,’ which ONE of the following statements is NOT true

Answer

Answer: Only natural persons can deal as consumers.

Q56: Liability for breach of the terms implied by the Sale of Goods Act 1979 cannot be excluded. True or False

Answer

Answer: Wrong – False

Q57: There are several differences between the Unfair Contract Terms Act 1977 and the Unfair Terms in Consumer Contracts Regulations 1999. Which ONE of the following is not a valid difference

Answer

Answer: Under the Act, the burden of proof is placed on the consumer, whereas under the Regulations, the burden of proof is placed on the party relying on the exclusion clause.

Q58: In relation to misrepresentation, which one of the following statements is true

Answer

Answer: Statements amounting to mere ‘puffs’ cannot amount to a misrepresentation.

Q59: What are the general remedies for innocent misrepresentation

Answer

Answer: Rescission of the contract and the representee may also be able to claim an indemnity.

Q60: Which one of the following statements provides an accurate description of a mutual mistake

Answer

Answer: A mutual mistake occurs where both parties have made a mistake, but they have made a different mistake.

Q61: Which one of the following is NOT an example of common mistake

Answer

Answer: Mistake as to identity

Q62: Regarding mistake as to identity, which one of the following statements is true

Answer

Answer: Where parties contract face-to-face, and one party is not who he claims to be, the general rule is that a mistake as to identity will not occur.

Q63: Which one of the following relationships DOES NOT give rise to a presumption of undue influence

Answer

Answer: Employer and employee

Q64: In relation to duress, which one of the following statements is true

Answer

Answer: The presence of duress will render a contract voidable.

Q65: Which one of the following contracts is NOT an example of an illegal contract

Answer

Answer: A contract that purports to oust the jurisdiction of the courts.

Q66: Which one of the following is NOT an example of a contract in breach of public policy

Answer

Answer: A contract involving commercial dealings with the enemy during wartime.

Q67: Which ONE of the following is not a method by which a contract can be discharged

Answer

Answer: Discharge by misrepresentation

Q68: Regarding the time of performance, which ONE of the following statements is untrue

Answer

Answer: Where time is of the essence of a contract, a slight delay will not allow the non-breaching party to terminate the contract.

Q69: Regarding the tendering of performance, which ONE of the following statements is untrue

Answer

Answer: If a debtor attempts to tender payment, but the other party refuses, then the debtor is discharged from the obligation to pay.

Q70: In relation to discharge by agreement, which ONE of the following statements is untrue

Answer

Answer: If both parties wish to discharge a contract, they must create a written agreement stating that the contract has been discharged.

Q71: What is ‘renunciation?’

Answer

Answer: Renunciation occurs where one party demonstrates an intention not to perform his contractual obligations.

Q72: Regarding breach of contract that arises through defective performance, which ONE of the following statements is true

Answer

Answer: Where statute or case law does not classify the status of a term, the court will attempt to determine the status of the term by reference to the parties’ intentions.

Q73: What is an innominate term

Answer

Answer: An innominate term is a term which, if breached, allows the non-breaching party to terminate the contract providing that the breach deprived him of substantially the whole benefit of the contract.

Q74: If a non-breaching party validly terminates the contract, a number of consequences may follow. Which ONE of the following is not a valid consequence of termination

Answer

Answer: Termination always discharges the entire contract.

Q75: If the non-breaching party decides to affirm the breach, a number of consequences may follow. Which ONE of the following is not a valid consequence

Answer

Answer: If the non-breaching party affirms the breach, the contract remains in force, but any further breaches will entitle the non-breaching party to immediately terminate the contract.

Q76: What is frustration

Answer

Answer: Frustration occurs where a party fails to perform his contractual obligations due to an event that is beyond the control of either party.

Q77: Regarding the remedy of damages, which ONE of the following statements is untrue

Answer

Answer: Where the defendant maliciously breaches a contract, the court will increase the award of damages to take into account his reprehensible behaviour.

Q78: What is expectation loss

Answer

Answer: Expectation loss is a measure of damages designed to compensate the claimant for the benefits that he would have expected to gain had the defendant not breached the contract.

Q79: Which ONE of the following is not a form of non-pecuniary loss

Answer

Answer: Loss of profits.

Q80: In relation to causation, which ONE of the following statements is untrue

Answer

Answer: If the claimant’s loss is caused partly by the defendant’s breach of contract and partly by the intervening act of a third party, the defendant will not be liable for the claimant’s loss.

Q81: Which ONE of the following statements best describes the likely consequence of the non-breaching party failing to mitigate his loss

Answer

Answer: The non-breaching party will be unable to recover those losses that he could have avoided by taking reasonable steps.

Q82: What are liquidated damages

Answer

Answer: A pre-estimate of the amount of damages to be awarded in the event of a breach of contract occurring.

Q83: What is a prohibitory injunction

Answer

Answer: An order of the court requiring the defendant to refrain from the performance of a certain act.

Q84: Regarding the limitation period of a breach of contract action, which ONE of the following statements is untrue

Answer

Answer: If the action for breach of contract is based upon the fraud of the defendant, then the limitation period begins to run only when the claimant first sustained loss.

Q85: Statement “As a tort is a form of civil wrong, it follows that a tortious act cannot result in criminal proceedings being initiated.”

Answer

Answer: Incorrect

Q86: In relation to the aims of tort law, which ONE of the following statements is incorrect

Answer

Answer: The law of torts aims to protect only those who have suffered loss.

Q87: One of the key concepts in the law of torts is the duty of care. In relation to the duty of care, which ONE of the following statements is true

Answer

Answer: A tortious remedy will only be granted if there exists a tortious duty not to cause a particular harm.

Q88: Concerning the scope of persons who can commence proceedings in tort, which ONE of the following statements is untrue

Answer

Answer: If a victim of defamation dies, his action can be continued by his personal representatives.

Q89: What is a ‘joint tortfeasor?’

Answer

Answer: Where two or more persons commit a joint tort, or commit a tort whilst in the pursuance of a common design, they are said to be ‘joint tortfeasors.’

Q90: Establishing that the tort of negligence has been committed requires four requirements to be met. Which ONE of the following is NOT a requirement

Answer

Answer: The defendant must know, or should have known, that he owed the claimant a duty of care.

Q91: There are numerous examples of duties of care. Which ONE of the following is NOT a situation where the courts have established that a duty of care exists

Answer

Answer: An auditor of a company’s accounts owes a duty to care to anyone who might read his report based on those accounts.

Q92: The case of Caparo Industries plc v Dickman established the requirements for the existence of a duty of care. Which ONE of the following is NOT a requirement

Answer

Answer: In order for a duty of care to arise, the defendant must realise that his actions could cause harm to another.

Q93: Regarding liability in negligence for an omission, which ONE of the following statements is untrue

Answer

Answer: An individual who witnesses the commission of a tort, but fails to prevent it or inform the relevant authorities, will commit a negligent omission

Q94: What is a ‘secondary victim?’

Answer

Answer: A person who witnesses, or is told about, another’s negligence, but who does not fear for his physical safety.

Q95: What is ‘pure economic loss?’

Answer

Answer: Financial loss that is not associated with physical injury or property damage.

Q96: When can a claimant recover damages for ‘pure economic loss?’

Answer

Answer: Where the defendant has made a negligent misstatement that causes the claimant to sustain pure economic loss.

Q97: When determining whether a breach of duty has taken place, the courts will take into account a number of factors. Which ONE of the following is NOT a relevant factor

Answer

Answer: The ease with which the damage sustained can be financially assessed.

Q98: Regarding product liability under the common law, which ONE of the following statements is true

Answer

Answer: Where product liability at common law is established, the claimant cannot claim for the damage sustained to the product itself.

Q99: Regarding the relationship between the common law and statutory rules relating to product liability, which ONE of the following statements is true

Answer

Answer: The provisions of the Consumer Protection Act 1987 exist alongside the common law rules.

Q100: Which ONE of the following classes of person cannot be liable under the Consumer Protection Act 1987

Answer

Answer: A producer who exports products into the European Union.

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